Top down bottom up approach for enterprise risk management

Description:

The image is a PowerPoint slide illustrating the "Top Down Bottom Up Approach for Enterprise Risk Management." This approach combines two methodologies for identifying and managing risks within an organization.

The slide features a central triangle divided into four horizontal segments, each numbered and color-coded, representing different levels of risk identification within a company:

1. Oversite of the risk by Audit Committee (Blue segment at the top):

This highest level indicates that the Audit Committee provides oversight for risk management, ensuring that risks are being identified and managed appropriately.

2. Executive team identifies the risk (Lighter Blue segment):

Just below the top, this layer suggests that the executive team also plays a critical role in identifying risks that may affect the company's strategic goals.

3. Internal Audit identifies the risk (Green segment):

The third level from the top shows the role of the Internal Audit function, which is instrumental in identifying operational risks that could impact the company.

4. Business Leaders identifies the risk (Red segment at the bottom):

The base of the triangle indicates that business leaders, such as department heads or managers, identify risks at the operational or tactical level.

To the left of the triangle, two arrows labeled "Top down approach here." and "Bottom Up Approach here." indicate the dual-directional nature of this risk management approach. "Top down" refers to the oversight and direction coming from the highest levels of the organization, while "Bottom up" refers to the insights and ground-level risk identification that informs the broader risk strategy.

Each section of the triangle contains a placeholder for additional text, showing that the slide can be customized with specific details about the risk identification processes at each level.

Use Cases:

The Top Down Bottom Up Approach is integral to comprehensive risk management across sectors, ensuring all levels of an organization contribute to risk mitigation.

1. Banking:

Use: Implementing risk management in financial operations.

Presenter: Chief Risk Officer.

Audience: Bank Executives, Risk Management Department.

2. Healthcare:

Use: Managing patient safety and compliance risks.

Presenter: Compliance Director.

Audience: Hospital Administrators, Clinical Staff.

3. Manufacturing:

Use: Identifying operational and safety risks in production.

Presenter: Safety Manager.

Audience: Plant Managers, Safety Officers.

4. Information Technology:

Use: Addressing cybersecurity and data privacy risks.

Presenter: IT Security Chief.

Audience: IT Staff, C-suite Executives.

5. Construction:

Use: Mitigating project risks from planning to execution.

Presenter: Project Director.

Audience: Construction Managers, Engineers.

6. Energy:

Use: Overseeing environmental and regulatory compliance risks.

Presenter: Environmental Compliance Officer.

Audience: Policy Makers, Operations Managers.

7. Aerospace:

Use: Assessing and managing risks in aerospace engineering and operations.

Presenter: Quality Assurance Lead.

Audience: Engineers, Operational Staff.